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Equity Index Highlights - May 2019 edition

Release date: 09 May 2019 | Eurex Exchange

Equity Index Highlights - May 2019 edition

Latest edition

Market briefing

April saw the continued rebound of broad equity markets and has now developed into a classic melt-up, crushing realized volatility with narrow daily trading ranges. That's not to say the market has been completely devoid of stories; the on-off Deutsche Bank / Commerzbank merger resulted in strong volumes for our EURO STOXX® Banks Futures with the respective Banks Options volumes more than doubling compared to the same period last year. Members have also been quick to build open interest in the new STOXX® Europe 600 ESG-X Futures. Here almost 40,000 contracts were recorded in April. The MSCI suite of derivatives continues to gather pace, this time it was MSCI France's turn to hit nearly 50,000 traded futures as members target the portfolio margin benefits of trading and clearing on Eurex.Casting an eye on global equity markets, there has been a virtual 'unicorn stampede' to IPO several high-profile tech companies in the US: Lyft and Pinterest, to be followed soon by Airbnb, WeWork and Uber amongst several others. This picture is repeated in the red-hot tech scene in China right now despite vast accumulated losses as private companies. It is certainly noteworthy that some of the smartest VC minds in tech consider now is the right time to tap public equity markets. Perhaps they too adopted the mantra of "sell in May and go away". However, if you are more of a believer that the current trend remains intact, then Eurex provides the tools to hedge, or build, core equity positions. We have seen some of this activity already across our benchmark products throughout April with our EURO STOXX 50®, DAX®, SMI® and VSTOXX® derivatives all enjoying strong monthly volumes.Looking ahead to May, we see the significant rollout of Eurex EnLight to all equity and equity index options. Members will now be able to access our selective RFQ platform, EnLight, to source block options liquidity. Here we anticipate strong liquidity provision from the registered responders keen to support order flow from the various requesting member firms. We look forward to members adopting and utilizing this additional channel and thus strengthen and broaden the liquidity pools across Eurex's equity and index options markets.

Two months after its launch, liquidity in Eurex’s Environmental Social Governance (ESG) segment deepens. On 17 April, 13,090 traded contracts flagged a daily record, exceeding the mark of 10,000 contracts for the first time. The new types of futures help market participants address the challenges and opportunities of ESG-driven asset management. In March, Eurex received approval from the CFTC to offer its ESG futures in the U.S. as of 15 April 2019.

In this series of articles, we look at the fundamental changes in our industry and the challenges and opportunities that these bring. This article touches on the evolving role the buy side plays in the financial industry by insourcing their own activities.

In our series on the Chinese capital markets, this article puts China and the development of its capital market in perspective. The development itself is not new – new is the speed in which it has been happening over the last years. The changes we see are impressive.

Eurex EnLight, the selective RFQ platform, combines off-book liquidity with on-exchange efficiency. In May 2019, Eurex EnLight has been extended to include all equity and equity index options as well as corresponding futures available at Eurex. Randolf Roth, Member of the Executive Board, Eurex Frankfurt AG, explains the advantages of Eurex EnLight and further enhancements planned.

Basis, or market-on-close (MOC), trading traditionally involves higher operational efforts and limited risk management as the basis is usually agreed on in the inter-dealer-broker market prior to the close of the cash markets. Learn how Eurex MOC Futures are designed to deliver multiple benefits to a market that is traditionally dominated by OTC trading in this animated video.

Events

Derivatives Forum Amsterdam & Paris: Register now!

Impact investing, technological advancements, regulation and geopolitical developments are rapidly changing our industry. We will touch on this paradigm shift at our Derivatives Forum 2019. Topics of discussions are changing market structures, the impact of ESG and the evolution of the European financial markets landscape. Register now to join us us in Amsterdam on 13 June and in Paris on 25 June!

More than 150 experts from the derivatives community gathered in a beautiful location in Frankfurt's "new" Old Town to join the Derivatives Forum 2019. The overall themes of the event hosted by Eurex were the changes in the financial industries with a special look on sustainability and new market structures.

Join us for thought-provoking and controversial roundtable discussions! Let’s take a different approach and play devil's advocate on some of the common beliefs and benefits on well-known topics such as ESG, IBOR transition and market infrastructure. Each roundtable will include experts from Eurex, the sell and buy side plus a senior industry expert who will engage with the audience on and around their table on the above-mentioned topics.

More than 150 experts from the derivatives community gathered in a beautiful location in Frankfurt's "new" Old Town to join the Derivatives Forum 2019. The overall themes of the event hosted by Eurex were the changes in the financial industries with a special look on sustainability and new market structures.

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